Bull Run Far From Over in Ayodhya: Ankit Kansal

Ayodhya’s property market is like a “goldmine” where major developers and hoteliers are eyeing big deals. According to Ankit Kansal, MD, Axon Developers, both local and pan-India players are active in the temple town as it boosts tourism, hospitality and the real estate market.

In an interview, Kansal said that the temple town has a very bright future with the bull run just starting.

Is the Bull Run over in Ayodhya? How do you see the property market in the temple town going from here?

The bull run in Ayodhya is far from being over. In fact, the show has just begun and it is going to last long. Ayodhya is a destination of national and international significance, resulting in a booming tourism, hospitality and real estate market.

The temple town scores heavily on the strategic agenda of the government and development agencies. Already close to INR 30,000 crore has been spent on infrastructure with an additional corpus of around INR 55,000 crore.

Everyday, close to 1- 1.25 lakh tourists visit Ayodhya from all over the world. This places it in the league of other prominent tourist destinations such as Mathura (1.7 5 lakh), Amritsar (1 lakh) and Tirupati (75,000-1 lakh).

During weekends, most of the hotels and homestays are full. The dual factor of massive infra push and robust tourism market has generated tremendous excitement in the city’s property market.

Can you offer some insights and perspective about lucrative property options in Ayodhya?

Ayodhya’s property market is like a goldmine with major developers alongside hoteliers eyeing big deals. Both local and pan-India players are active in the region. Prime properties in location such as Ram Path are priced in the range of INR 8,000-INR 10,000 PSF drawing parallel to major metros.

Land prices are growing frenetically at around 30-50 per cent yearly. In fact, there are hardly any fresh parcels available at the moment. Now, you can assume how bullish the sentiments are. We are mainly seeing high-end luxury properties and premium hotels in this region.

Slightly outside, (3-8 km radius from the temple) properties are priced at around INR 4,000-INR 5,000 PSF, growing at a staggering pace of around 21% annually. This is a region where many upscale and midscale hotels, commercial property development and residential township projects are breaking ground.

In the rural parts of Ayodhya, the sentiments are upbeat as it can be a fertile ground for farmhouses, resorts, branded land developments, wellness hotels, etc., to flourish.

How do you see the long rental market evolving in the city?

The vacation rental space is becoming a force to reckon with in the hospitality industry. Long lease rentals, homestays, serviced apartments, etc, will continue to complement the mainstay hospitality in metros and tourist destinations. The same holds in Ayodhya.

No doubt, major brands such as IHCL, Hyatt, Lemon Tree, Clarks, Radisson and Trident are launching projects (in some cases, more than one project) in the town. Despite a near rampage by most major hospitality players, the premium and upscale room supply of 4,800 (including a pipeline of 1,500 rooms) will fall short of the demand.

This will also mean a pressing need for a robust homestay segment, including rental villas and service apartments, to ensure seamless tourism flow.

How do you think the long rental market will evolve in Ayodhya? What concepts and ideas can click in the present scenario?

As mentioned above, there is a visible appetite for homestays, including private villas, guest houses and bed and breakfast-type of concepts, to flourish in the Ayodhya market. While for many, cost will be the key differentiator, the market is ripe for the niche premium homestay to evolve and scale up fast as well.

There will be demand for well-managed comfy spaces with few yet enriching services. Many visitors, cutting across the millennial and mature customer base will like to extend their spiritual and religious stay by appending other activities. This can include meditation, yoga, wellness, holistic health, etc. This will unlock avenues for wellness hotels and villas with tailor-made services.

Similarly, Ayodhya is located in the vibrant Awadh region of Uttar Pradesh, which is rich in culture, folk art, handicraft traditions, etc. This will infuse demand for rural tourism, especially amongst urban visitors from the metros, for whom Ayodhya and the nearby region can be a great haven to relax and unwind.

Is Axon also Planning any new project in Ayodhya?

Yes, we will soon come with a mega launch in the holy city. This is a luxury-branded home project with close to 350 service apartment units largely targeted at the NRI and HNI clientele base. It is located at a prime location on the Ram Path Road, just 1.5 km from the temple premises. The high-end project will be developed in partnership with a leading hospitality player. We may also launch a five-star hotel alongside the premium apartments in the vicinity. We are in the final stage of discussion and more details will be shared with the media soon.